Petrobras and CADE signs agreement for the downstream segment

 

Rio de Janeiro, June 11, 2019 – Petróleo Brasileiro S.A. – Petrobras reports that it has signed a  commitment agreement with the Administrative Council for Economic Defense (CADE), which consolidates the understanding between the parties on the execution of divestment of refining assets in Brazil.

The purpose of the agreement is to provide competitive conditions, encouraging new economic agents to enter the downstream market, as well as suspending the administrative investigation opened by the CADE Court to investigate alleged abuse of Petrobras’ dominant position in the refining segment.

By signing this agreement, among other related commitments, Petrobras is committed to sell all refining assets disclosed in a press release dated 04/26/2019, based on a schedule agreed upon by the parties, according to the terms of the company’s divestment methodology, pursuant to the provisions of Decree 9.188/17, subject to the economic-financial assessments relating to each asset, as well as the technical, legal, financial and compliance requirements by potential buyers.

The agreement also provides that the following assets considered as potential competitors may not be acquired by the same buyer or companies within the same economic group: (i) Landulpho Alves Refinery (RLAM) and Abreu e Lima Refinery (RNEST); (ii) Presidente Getúlio Vargas Refinery (REPAR) and Alberto Pasqualini Refinery (REFAP); and (iii) Gabriel Passos Refinery (REGAP) and Landulpho Alves Refinery (RLAM).   In addition, the schedule and the fulfillment of the commitments assumed with CADE will be followed up by an external agent, to be hired by Petrobras, according to specifications to be established by mutual agreement.   Petrobras believes that the execution of the agreement consolidates the cooperation efforts between CADE and the company, providing greater legal certainty to the announced divestment.

Subsequent phases of the refining divestment projects will be timely disclosed to the market.

This report on Form 6-K shall be deemed to be incorporated by reference into the Preliminary Prospectus Supplement, dated June 10, 2019, relating to the previously announced offer by Caixa Econômica Federal of common shares, including common shares represented by American depositary shares, of Petróleo Brasileiro S.A. – Petrobras.

Source: Petrobras

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